GPAM SSOS YTD +1.68% June 2016 -1.08%

Dear Investor,

Another month has passed, it’s unbelievable we are not approaching the middle of July! This month in the Seasonal Spread Option Strategy we were down -1.08% and the market remains very difficult. During the month we were forced to stop out one of our long term trades. Specifically we were long the Kansas City Wheat against Chicago Wheat. Before I continue, in case you are not familiar with this trade in our strategy, we typically trade on the long side the Kansas City wheat contract because we generally believe the actual Kansas City wheat underlying the futures contract is of better physical quality and thus should be worth more relative to the Chicago wheat (of lesser quality in our opinion) contract.  Unfortunately, this year, in this spread, we have not been correct with our assumption. We were stopped out while long as the spread between Kansas City and Chicago wheat touched a new historical low for the July contract forcing us to take losses.
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